Analysis of the reasons for the failure of enterprises to implement ERP

The regaining of ERP’s rational attention does not mean that the implementation and application of ERP has become easy. We must re-examine the serious fact that the actual application of ERP in China for more than 20 years is far from satisfactory. How can we implement and apply ERP? This is still a key issue. To answer this question, it is necessary to examine the reasons for the unsuccessful implementation of ERP. Many experts have inspected the unsuccessful implementation of ERP and found that the following phenomena are almost common:

  • (1) The basic data is inaccurate. For example, inaccurate inventory records, inaccurate bills of materials, inaccurate routings, etc. Therefore, effective planning data cannot be obtained based on these data to guide the production and operation activities of the enterprise.
  • (2) The majority of employees in an enterprise lack the spirit and feeling of being a master of ERP. Only a few people are doing ERP implementation work, generally only IT personnel are doing this work, personnel from other functional departments did not intervene or participated in part of the work in a manner of providing help to IT personnel, and it was very difficult to advance the entire project.
  • (3) The implementation process lacks a proactive and practical plan, intermittently, and delays for too long, so that employees lose enthusiasm for project implementation.
  • (4) The employees in key positions changed jobs, and the new employees did not understand the situation, which hindered the project. If this happens in leadership positions, the problems will be very serious.
  • (5) The employees of the company are not willing to give up their accustomed way of working to use the ERP system. They often want to modify the ERP system to adapt to their original working methods.
  • (6) Insufficient education and training. The majority of employees lack a comprehensive and in-depth understanding of how to apply ERP systems to solve corporate problems. I don’t know how to maintain the system, nor how to measure the operation of the system.
  • (7) The most serious problem is often that the senior leaders of the company, especially the top leaders, do not pay attention. I think ERP is a matter of technical experts, and I think it is the following things. I support staying verbally, and basically do not intervene personally, let alone participate.

It is not difficult to see that the above problems are essentially human problems, and the reason behind them is the lack of deep understanding and understanding of ERP principles, processing logic, implementation and operation management methods. People often think that buying an ERP software system can solve all problems immediately and easily. Everyone knows that the implementation and application of ERP requires a lot of in-depth and meticulous work, which involves the change of people’s way of thinking and behavior, and it is an endless process. For example, the requirements for data preparation and data accuracy make people feel troublesome, make people feel rushed, and feel disgusted. In fact, feeling troublesome is a reflection of formal and extensive business habits, and the rushing is a sign that the management foundation of the enterprise must be further improved.

In the past, if our company did not want to compete in the “outside world”, it would always be easy to survive on our own land. However, today we must allow others to compete in our “home”. This is a no-brainer. Retreat, competition with nowhere to hide. This also makes our companies have to stand up to meet the challenges even if they want to survive on their own land, not to mention our companies have to “fight” outside. In short, under the new situation, if an enterprise wants to survive and develop, it must actively participate in the global market competition and win the competition.

To win the competition, we must know ourselves and our opponents. Then, what are the competitive advantages of today’s Western and Eastern world-class companies? Products and technologies are easy to see, and the deeper things are management concepts and tools. What is ERP? It is the tool that these world-class companies are using, so the application of ERP is the general trend.
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